Plan details include the following:
- Help for home owners making their payments but at risk of default. Home owners with a conforming loan could be eligible to refinance as long as their mortgage doesn't exceed 105% of the home's current market value
- Help for home onwers already in default and in need of loan modification. For lenders that voluntarily agree to lower a borrower's payment so that it makes up no more than 38% of the borrower's income, the government would share the cost of lowering the mortgage burden further.
- Doubled resources to Fannie Mae and Freddie Mac. To encourage investors to buy the secondary market companies' mortgaged-backed securities, the government promises to back them to up to $400 billion, twice the current amount.
The stimulus package and foreclosure plan are a good beginning to help solve the nation's economic distress. "By helping good people caught in bad mortgages, we are keeping inventory from being added to a market already under stress," commented NAR 2009 president Vick Cox Golder.
Go to the National Association of REALTORS website for more information